Automotive giant Mahindra & Mahindra‘s subsidiary Mahindra Two Wheelers has been hit with a penalty of ₹33.95 lakh under the Central Goods and Services Tax (CGST) Act.
What Happened: The Office of the Joint Commissioner, CGST & Central Excise Ujjain Commissionerate, Madhya Pradesh issued the penalty notice, as per a stock exchange filing. The order was received by the company on Monday.
The penalty came into effect due to discrepancies with the two-wheeler business, which was earlier separated from MTWL and later merged with Mahindra & Mahindra. The penalty was imposed based on the accusation that the closing balance of input credit from the pre-GST period was wrongly carried forward into the GST era.
Mahindra & Mahindra said it remains positive about the situation. The company plans to appeal against the order and does not anticipate any substantial financial impact from it.
Price Action: The ruling did not have much of an impact on Mahindra & Mahindra’s stock, which was up 0.6% at ₹1,561.45 around noon on Tuesday.
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